Smaller businesses ineligible or not receiving enough support from the federal government’s slate of existing relief programs can now apply for financial aid through its six regional development agencies.

Last month, the federal government announced a $962-million Regional Relief and Recovery Fund that would offer funds for smaller businesses in the six economic regions and in rural communities.

The program will offer support for smaller enterprises, particularly those in seasonal industries such as tourism, who cannot access programs including the Canada Emergency Wage Subsidy or the Canada Emergency Business Account. Support is also available for businesses that have already accessed COVID-19 relief measures and continue to experience hardship.

Applicants must have already applied for other federal support measures. Financial aid through the fund is repayable in almost all cases.

Prime Minister Justin Trudeau said the regional agencies will help businesses cover their ongoing costs and retain employees.

“These organizations understand the economic realities and specific challenges facing both your region, and your business,” he said on Wednesday.

Money will be allocated as follows:

$110 million through the Atlantic Canada Opportunities Agency

$211 million through the Canada Economic Development for Quebec Regions

$34.3 million through the Canadian Northern Economic Development Agency

$252.4 million through the Federal Economic Development Agency for Southern Ontario

$49.5 million through the Federal Economic Development Initiative for Northern Ontario

$304.2 million through Western Economic Diversification Canada

Economic Development Minister Mélanie Joly said Wednesday that the program will offer support for smaller firms that “fell through the cracks” when it comes to accessing other federal programs. She said tech startups and manufacturers are among businesses who can apply for help.

Funding need is based on liquidity constraints due to COVID-19. Businesses can use the funds for equipment and machinery rental or leasing, wages and benefits, property taxes, professional fees, insurance, and other overhead or one-time stabilization costs.

In a statement, the Canadian Federation of Independent Business said the program is good news for many firms “who find themselves too small or with unique circumstances” that prevent them from accessing other federal support, as well as seasonal businesses that expect a difficult summer.

“Having grants and loans that can fit some of these circumstances will be a relief to many. However, it will be crucial that these new support programs are developed and delivered quickly as we enter the third month of the shut-down,” said president and CEO Dan Kelly.

Kelly added that the program should not divert attention away from revising existing program rules, including expanding eligibility for CEBA.

Trudeau said more than half a million small businesses have received a loan through the program, which is providing loans worth up to $40,000, with $10,000 forgivable.

He said more than 120,000 employers have been approved to receive the wage subsidy, which is estimated to help two million workers.

Student benefit portal goes up May 15

Trudeau also said Wednesday that students and recent graduates can begin applying for the Canada Emergency Student Benefit worth $1,250 — or $2,000 for students living with a disability or with dependents — on Friday through the Canada Revenue Agency.

Employment Minister Carla Qualtrough said applicants who are able to work must attest that they are actively seeking employment in their application, a feature that would help satisfy the requests of the Conservatives and Bloc Québécois, who wanted Ottawa’s relief plan for students to encourage working.

Students will also be directed to job banks listing available employment opportunities near them during the application process.

“We have to tell students where they can find work, what jobs are available,” Qualtrough said during a news conference Wednesday.

She said as Canada heads into recovery and provincial economies reopen, there is regulatory flexibility to revise the rules of the Canada Emergency Response Benefit and the CESB to “make it easier to make a transition back to their work.” Currently, recipients of both program can earn up to $1,000 in month income.

However, Qualtrough said “it would be very premature to say that is coming anytime soon.”

Work on border deal

Trudeau also said conversations with American counterparts on extending border restrictions are “ongoing, are constructive and are productive.”

Restrictions that prohibit cross-border non-essential travel were hastily agreed to in March for a two-month period, but are set to expire on May 21.

Trudeau said he has spoken with U.S. President Donald Trump several times over the past weeks and their conversations “have always been very positive.”

“I won’t make any announcements today but I can say things are going well and we are confident about being able to continue to keep Canadians safe,” he added.

CTV News reported last week that Canada is in discussions with American counterparts to extend the restrictions for another month.